TAX INCENTIVES

NABUA INVESTMENT INCENTIVE CODE
Code Number and Date Approved: No. 02-08-2002S August 9, 2002

   Fiscal Incentive

Tax Incentives to Registered Enterprise - In addition to the incentives provided by law and the Provincial and National Government as well as enterprise registered under the Ordinance shall be fully exempt from payment of:

• Micro-Scale Enterprise

1. Mayor's Permit Fees, Business Sales Taxes, Fees and Charges within 2 years from the start of the commercial operation

2. Basic Real Property Tax accruing to the general fund, imposed under Tax Ordinance of Nabua for a period of 2 years from the date of the approval of the registration by the Board.

• Small-Scale Enterprise

1. Mayor's Permit Fees, Business Sales Taxes, Fees and Charges within 3 years from the start of the commercial operation

2. Basic Real Property Tax accruing to the general fund, imposed under Tax Ordinance of Nabua for a period of 3 years from the date of the approval of the registration by the Board.

• Medium-Scale Enterprise

1. Mayor's Permit Fees, Business Sales Taxes, Fees and Charges within 4 years from the start of the commercial operation

2. Basic Real Property Tax accruing to the general fund, imposed under Tax Ordinance of Nabua for a period of 4 years from the date of the approval of the registration by the Board.

• Large Industries

1. Mayor's Permit Fees, Business Sales Taxes, Fees and Charges within 5 years from the start of the commercial operation

2. Basic Real Property Tax accruing to the general fund, imposed under Tax Ordinance of Nabua for a period of 5 years from the date of the approval of the registration by the Board.

   Requirements and Conditions to Avail of Incentives

Qualification of an Existing Enterprise - an existing enterprise may avail of the incentives under the Ordinance provided that it meets the following qualifications:

1. That the business enterprise must have complied with all the requirements mandated under existing Local and National Laws and Constitution.

2. That the expansion/diversification must engage in activities in preferred areas of investments as may hereafter be declared by the Board

3. That the existing Enterprise whose place of operation or production is already located within the territorial jurisdiction of Nabua, but whicj will undertake any of the following activities:

• Relocate its principal office from other places in the Philippines to Nabua, or

• Expand its existing production capacity or construct new buildings and other civil works for the installation of new machinery and equipment or improvements thereof which will result in an increase in production capacity

• That the expansion/diversification shall have a capitalization of at least P500,000.00 but not more than P 1,000,000.00 in case of micro-scale enterprise, at least P 1,000,000.00 but not more than P10,000,000.00 in case of small-scale enterprise; at least P 10,001,000.00 but not more than P 25,000,000.00 in case of medium-scale enterprises; and P 25,000,001.00 in case of large industry, provided that the amount of capitalization shall be based on the total project cost of such expansion/diversification as stated in the investors project study submitted to and approved by the Board

• That the expansion/diversification shall provide out of the labor force an employment of not less than 5 persons in case of micro-scale enterprise; at least 10 persons in case of small scale enterprises; at least 25 persons in case of medium-scale enterprises; and at least 50 persons in case of large industry, who are bonafide residents of Nabua

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